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Cloud Database Developer DataStax Raises $115 Million In Funding Round
Company will accelerate development of its Astra DB database-as-a-service with a focus on capabilities that support real-time data applications.
Database and real-time data technology developer DataStax has raised $115 million in a private equity funding round led by Goldman Sachs, the company said Wednesday.
DataStax, headquartered in Santa Clara, Calif., said it will use the additional funding to speed up its global expansion and accelerate development of its Astra DB multi-cloud database and Astra Streaming data streaming service.
“We see the transformative power of real-time applications across industries on a daily basis and among customers such as The Home Depot, Verizon, and Capital One,” said Chet Kapoor, DataStax CEO, in a statement. “What‘s clear is that we’re only in the early stages of what‘s possible with new data-driven experiences that will serve a wide range of human needs, create virtuous cycles between companies and their customers, and move markets.”
DataStax has raised a total of $342.6 million since its 2010 founding, according to the Crunchbase website.
The round was led by the Growth Equity business within Goldman Sachs Asset Management, DataStax said. Also participating in the round were RCM Private Markets fund advised by Rokos Capital Management and the Singapore-based global investor EDB Investments Pts. Ltd., along with existing investors Crosslink Capital, Meritech Capital Partners, OnePrime Capital and other current investors.
“We appreciate that our investors believe in our vision – even in this economy we were able to raise significant capital at a substantial premium over the round we completed just a year ago,” Kapoor said.
Increasing Cloud Database Demand
DataStax develops the DataStax Enterprise distributed NoSQL database based on the open-source Apache Cassandra database technology that is designed to handle huge volumes of data. Cassandra is also the core technology behind Astra DB, the serverless, multi-cloud database-as-a-service DataStax launched in 2020.
The company also offers Astra Streaming, a data streaming service built on Apache Pulsar. Astra DB and Astra Streaming are used to build and run real-time applications at massive scale within multi-cloud environments.
DataStax, in a statement, said it will “double down on development of Astra DB” with new capabilities including additional integration with Astra Streaming “to enable businesses to easily activate all their real-time data” including “in motion” streaming data and data “at rest” within a database.
On May 31 DataStax said it had a strong fiscal 2023 first quarter in which Astra DB recorded 350 percent growth in year-over-year sales and accounted for more than 50 percent of the company’s new annual recurring revenue.